One of the first popular fast-fashion chains to open on Australian shores, Topshop Australia has announced it will be going into voluntary administration.
The company, headed by CEO Ian Grabiner and controlled by the Arcadia Group, fronted by Sir Phillip Green, was originally founded in 1964 and has since expanded to 40 countries worldwide, with over 500 stores. Locally though, Topshop has had seen clear competition since opening here in 2011 with the arrival of giants like Zara, H&M and Uniqlo not so long after. The brand currently employs 760 staff members who, despite being guaranteed payment during the administration period, are now in limbo as the company tries to nut out a “sustainable” business model going forward.
Voluntary administration is an “insolvency procedure” where an external administrator is nominated by company directors to try and turn the company around.
Before you head out and panic buy a lifetime’s worth of denim, the most important question is: voluntary administration?
According to ASIC (Australian Securities and Investments Commission), voluntary administration is an “insolvency procedure” where an external administrator is nominated by company directors to try and turn the company around. As Topshop Australia reportedly has mounting debts, the brand’s directors decided to give control to an external body – in this case, administrators Ferrier Hodgson – to sort it out.
“The Austradia management team are working closely with the administrators to ensure the best possible outcome for the business,” Ferrier Hodgson partner James Stewart said. “Topshop/Topman is one of the world’s best known fast-fashion retailers operating nine stand-alone stores, 17 Myer concessions and an on-line business in Australia.”